A Portfolio Consists of a Serial Bond with the Following

Multiple Choice

A portfolio consists of a serial bond with the following terms: Face amount $10,000 Coupon rate 5.0% per year, payable annuallyRedemption At par in two equal installments: the first payable in 9 years; the second payable in 10 years.Yield to maturity 4.0% per year, compounded annuallyX = the modified duration of the portfolio.In what range is X?

A) Less than 7.40
B) 7.40 but less than 7.60
C) 7.60 but less than 7.80
D) 7.80 but less than 8.00
E) 8.00 or more